(Finance) – There is a new technology, DLT (Distributed Ledger Technology, ed.). If the market develops it is It is good that central banks offer liquidity to be able to carry out these transactions on DLTsbecause the risk is that otherwise – if there is no central bank liquidity – there is the risk that the market will not develop because it is too risky to make transactions that cannot be closed by central bank money”. Piero Cipollonemember of the executive committee of European Central Bank (ECB), on the sidelines of the annual congress of Assiom Forex, the association of financial market operators, underway in Genoa.
“Central banks are technology neutral – he explained – therefore we need to accommodate what the market asks for, in order to leave the market free to grow without conditioning it, because one is not able to go back to the new use cases that can be developed using those technologies. So that’s the philosophy and what we’re experimenting with.”
“We as the Eurosystem are providing the infrastructure to leave the market free to grow and to experiment with new possibilities”, underlined the central banker.
“There are two other possibilities – he added – One is that stablecoins are used, another possibility is that tokenized deposits are used, which there is nothing wrong with, but the only problem is that these are private coins and therefore the purpose of the payments does not exist, it only exists if the leg that comes out is provided by the central bank. So it is simply a move in step with the times to provide the market infrastructures that could be useful to us in a few years“.